Advance Ruling

Advance Ruling means:
An Advance Ruling is commonly defined as a “letter ruling, which is a written statement, issued to a taxpayer by the respective tax authorities (in the United States case, the U.S. Internal Revenue Service (IRS) National Office), that interprets and applies the tax law to a specific set of facts.” A letter ruling must be requested, as in most countries, in advance of completing a transaction.

U.S. and other Developed Countries International Tax Meaning

Advance rulings are often used, sometimes from foreign based companies, in countries like Switzerland, Holland and Luxembourg.(Main Source: Mike Harries).